In this speech David Rule highlights the continuing trend in the transfer of defined benefit pension liabilities from employers to insurers and sets out some of the key risks facing annuity writers. David explains how the PRA’s implementation of Solvency II achieves a balance of protecting policyholders and facilitating long-term investment in the economy.
David also highlights some of the PRA’s expectations for internal ratings of direct investments and summarises our recent consultation on equity release mortgages. Turning to recent research on climate risk, David observes that more flood/subsidence is another reason why individual house prices might diverge from the index and therefore is a risk to equity release mortgage lenders.
An annuity is a serious business: Part two